Economists warn of food price hikes

Economists have warned that food prices will rise steeply if
the rand continues to fall further.

Grain and maize prices are already increasing despite stable
food prices on the international market. The rand is hovering at the R8.80
level against the US dollar.

“What you are seeing currently especially in the grain sides
is that the exchange rate has been blowing out on us where the international
prices have been fairly stable in principle so and all the grain commodities are
starting to hike,”says Agricultural Economist
at ABSA, Ernest Jonovsky.

Meanwhile, ANC secretary-general Gwede Mantashe says farmers
and government must talk to one another to resolve issues in the agricultural
sector.

Mantashe was the
guest speaker at the annual congress of the National Wool Growers’ Association
in Port Elizabeth. He says it is imperative that farmers engage with government
so that government can assist them

“Agri SA is talking to us more now, they also acknowledge
that the relationship has improved dramatically. But saying specific sectors,
wool growers, on their own must talk to us on their problems, so we can work
with them trying to resolve it. Only when we acknowledge problems can we
resolve them (sic),” says Mantashe.